Customer retention refers to a company’s ability to retain, renew, and nurture existing customers over time. Retention grows increasingly pivotal as the costs of acquiring new customers continue rising.
Tactics to improve retention focus on delighting clients including better onboarding, education, measuring satisfaction, loyalty programs, improved service, community engagement, upsells, special incentives, and surveying at-risk accounts.
Key metrics for monitoring client retention include customer churn rate, customer lifetime value, net promoter score, and recurring revenue renewal rates. Sales and marketing share responsibility for retention efforts. Retaining loyal, profitable customers directly drives business growth and stability.